What should I do if a family member opened a credit card in my name?

If a family member opened a credit card in your name, first talk to the person to see if there could be an honest explanation, and try to work things out. If that’s unsuccessful, immediately cancel the account and file a credit freeze to prevent the person from opening any other accounts in your name.

After that, you may want to report the incident to the Federal Trade Commission (FTC) and file a police report. Other important steps include disputing the account on your credit reports and getting identity theft protection to guard against future incidents.

When to Report vs. Solve the Issue Privately

If the family member opened an account but hasn’t racked up much of a balance or damaged your credit score with late payments, you could opt for a less intense approach. You could try to convince them to simply pay off the card, close the account, and stop misusing your identity, without reporting the incident. However, you don’t have any way to guarantee a resolution.

If the family member has already damaged your credit or refuses to close the account when you ask, you should go through the process of reporting the incident. Although it may be a struggle to go through this process when a family member is involved, they’ve committed credit card fraud and identity theft. You don’t want your credit score or your bank account to suffer just to spare them from consequences.

Steps to Take After a Relative Opened an Account in Your Name

1. Confirm that you’re not an authorized user.

Double check your credit report and make sure you’re not just listed as an authorized user, rather than the primary account holder. Most credit card companies report authorized users to the credit bureaus, so that could be why there’s a new account on your credit report.

If you are indeed an authorized user but don’t want to be (especially if your family member is using the account irresponsibly), you can ask them to remove you from the account. You could also call the issuer yourself and request removal.

2. Cancel the account.

Call the credit card company, explain the situation, and cancel the account. This will prevent your family member from racking up any more charges on the card. The credit card issuer will start an investigation into the fraud.

The credit card company may close your account right away, or they may need to wait until their investigation concludes. If the latter is the case for you, ask if they can at least freeze/lock your account to prevent any new purchases for the time being.

3. Freeze your credit.

Freezing your credit report prevents most people and companies from checking your credit report until you remove the freeze. That means the next time your family member fraudulently applies for a credit card in your name, the lender will not be able to access your credit report. Thus, the family member won’t be able to open any more accounts in your name.

This is only a preventative measure, though. You still need to deal with the damage that’s already been done.

4. Report the incident to the FTC.

It’s important to let the government know that you’ve been a victim of identity theft. This allows you to recover your identity and get an “Identity Theft Report” that you can send to creditors and the credit bureaus to prove that your situation is genuine and assist them with removing the fraudulent info. To file a report with the FTC, visit IdentityTheft.gov and click “Report Identity Theft,” then follow the instructions to provide information about your situation.

If you’d prefer to handle the process over the phone, you can call 877-438-4338 instead.

5. File a police report.

No one wants to have to call the police on their own family, but it’s a necessary part of getting your situation resolved. You should call the non-emergency number for your local police department or go in person to a station and explain your situation. The police can then start an investigation.

Reporting identity theft to the police is important because it provides a record of the incident and may help uncover other ways the person is using your identity beyond just opening credit cards. For example, if the family member pretends to be you when getting arrested, you could end up with a criminal record without knowing it.

Lastly, knowing that your family member is committing identity theft and not reporting it could make you complicit in the crime (even though it’s against you), so it’s best not to take the risk.

6. Review your credit reports and dispute the fraud.

Check over your credit reports to see if there are any other accounts or credit inquiries you didn’t authorize. Then, file a dispute with all three of the major credit bureaus: TransUnion, Equifax, and Experian, which you can do online, by phone, or by mail. You can provide the Identity Theft Report that you got from the FTC as part of the supporting documentation.

Once this process concludes, the credit bureaus should remove the fraudulent accounts from your credit reports, which can reverse any credit score damage they’ve caused.

7. Protect yourself for the future.

Obtaining identity theft protection can help guard against future incidents like this by alerting you to suspicious changes to your credit report as soon as they occur. Some identity protection services can also help restore your identity if you become a victim. They may even offer insurance coverage to compensate you for damages caused by identity theft.

WalletHub Premium provides identity theft protection, including identity restoration services and $1 million in identity theft insurance coverage, for a low monthly price. You can also learn more about credit card fraud and identity theft here on WalletHub.